• X-energy receives approval to construct four small modular nuclear reactors
• Each Xe-100 reactor will generate 80 MW of electricity
• The approval ignores critical outstanding safety concerns

Artificial intelligence companies are increasingly turning toward nuclear energy as electricity demand rises alongside expanding computing infrastructure.

X-energy has secured federal permission to construct modular reactors at a chemical manufacturing complex in Texas.

The approval allows the nuclear startup to bring its technology closer to commercial deployment, although operational reactors remain years away.

X-energy secures approval for four nuclear reactors

The Nuclear Regulatory Commission (NRC) has authorized construction of four Xe-100 reactors at a Dow industrial facility in Texas.

Each unit is designed to generate 80 megawatts (MW) of electricity alongside another 200 MW of thermal energy - so together, the proposed installation would provide 320 MW of electrical generation, giving the chemical manufacturer an additional source of industrial power.

X-energy describes the regulatory decision as the first construction authorization for an advanced nuclear installation at an American industrial location.

However, receiving permission to begin construction does not mean the reactors are ready to supply electricity for data centers.

The company expects Dow's installation to enter service sometime during the early 2030s, leaving several years before commercial operation begins.

The proposed technology uses uranium-bearing fuel pellets, with helium gas circulating through the reactor to carry away generated heat.

X-energy argues this arrangement offers safety advantages over conventional nuclear power systems, although independent experts have questioned those assurances.

The Union of Concerned Scientists also criticized the regulatory process, particularly the handling of outstanding safety considerations before construction approval.

“The NRC only accomplished this feat by pushing consideration of critical safety questions to a later date,” said Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists.

He argued that regulators should have resolved those outstanding concerns before authorizing construction at the industrial location.

Technology companies are betting on nuclear electricity

Demand from artificial intelligence infrastructure operators has given emerging nuclear developers another potential source of commercial interest.

Large technology companies need substantial electricity supplies for computing facilities, particularly as increasingly powerful AI systems require additional processing capacity.

Conventional electricity providers face growing pressure to accommodate those requirements, creating opportunities for alternative generation technologies.

Amazon has become one of X-energy's major financial supporters through its Climate Pledge Fund investment.

The technology company led a $500 million Series C-1 financing round in October 2024 and separately committed to purchasing 5 gigawatts of nuclear generating capacity, an agreement which gives X-energy a significant potential customer as it works toward developing commercial reactors.

The startup also attracted substantial investor interest through its initial public offering earlier this year, which generated $1 billion in proceeds.

However, enthusiasm among investors has moderated since the April listing, suggesting that commercial expectations remain sensitive to development timelines.

The company still faces the challenge of turning regulatory permission and financial commitments into functioning electricity-generating infrastructure.

Small modular reactors have attracted attention because their developers expect factory-oriented production and smaller installations to simplify construction.

No small modular reactor currently operates commercially in the United States, leaving X-energy's proposed installation dependent on successful construction and regulatory oversight.